bsc.news
Going Bullish With $CAKE
Duet Protocol has made a new farm strategy available to users to maximize $CAKE earnings with $ebCAKE.
The synthetic assets protocol announced the new strategy through Twitter and an accompanying Medium article on July 13. According to the announcement, the ebCAKE or Extendable Bonded CAKE strategy ensures that you enjoy up to twice the yield on your $CAKE staking while at the same time unlocking the liquidity of your stake by issuing a receipt token quarterly.
“Simply put into words, the ebCAKE strategy is the ultra $CAKE liquidity magic potion that has the potential to bring super attractive liquidity to BNB Chain,” Duet Protocol mentions in the article.
Some advantages of $ebCAKE are as follows:
- With staked ebCAKE, you can earn a high yield on a $CAKE syrup pool as well as in bDuet incentives.
- It is possible to sell a portion of the proceeds or sell your staked $CAKE early with liquidity offered on the PancakeSwap secondary market (stakers on the official site do not have the option to sell their earnings, all earnings are compounded automatically with no option).
- Additionally, users can utilize ebCAKE LP to earn trading fees, and in the future, ebCAKE can serve as collateral in a variety of Decentralized Finance (DeFi) protocols, other than Duet.
Recently, UST and stETH have unpegged, taking the whole crypto world by storm. Duet Protocol claims that users don’t need to worry about the same fate with ebCAKE. In the case of Duet's ebCAKE strategy, the maturity of ebCAKE is certain, which means even if the value of ebCAKE and $CAKE is below 1, you can still redeem $CAKE during the redemption period, which is guaranteed by the Duet Protocol smart contract.
How to Stake $ebCAKE:
Users can follow the subsequent steps to stake $ebCAKE:
- Convert $CAKE to ebCAKE on the Duet dApp here.
- Stake ebCAKE on Duet
- Get rewards (ebCAKE + bDUET ) from Duet
- You can un-stake ebCAKE from the Duet app at any time
- You can also Swap ebCAKE to CAKE (Expected to be 1:1, but may not always be pegged) anytime on PancakeSwap.
- When ebCAKE matures, ebCAKE to CAKE is redeemable (always 1:1) on Duet within a time window. After the lock-up period has expired, the lock-up period will automatically be extended by one year.
As part of the new $ebCAKE strategy, Duet Protocol offers rewards for those who provide liquidity through the Duet DApp with up to $2,000 and Non-Fungible Tokens (NFTs).
$CAKE is currently trading at $2.94, its lowest price in a year. In response to the global market downturn, PancakeSwap has proposed using more trading fees to support the CAKE buyback and burn mechanism. In a buyback, the protocol buys back some of the tokens it has issued from the market to increase the value of the rest of the supply.
By reducing their supply, $CAKE tokens will be able to function as an effective store of value over time and even increase in value with time. BSC News reached out to PancakeSwap for more information about their latest deflationary measures but we didn’t get a response. Learn more about PancakeSwap’s proposal here in this article by Abiodun Oladokun from BSC News.